Table of Contents
Foreign currency is the price of one national currency when compared to another currency, which is determined by supply and demand factors, such as the price of another product. The demand and offer of exchange rates come from the population of individual countries.
1.Price Determination Process:
The exchange rate is the amount of the local currency that you must pay to receive the unit in a foreign currency. According to the theory of purchasing power parity, the exchange rate is determined by the relative purchasing power of the two currencies.
There are two methods for determining the exchange rate. One method is in the classic gold standard mechanism, different in the classic paper currency system. Today, the Gold Standard mechanism does not work because the standard currency unit is not converted to gold. All countries now have a paper currency that can not be converted into gold.
If a reverse paper system is used, there are two methods for determining the exchange rate. The first is known as the purchasing power parity theory, and the second is the theory of demand or balance of payments theory. From then on, purchasing power parity theory is untrue, we treat a single demand approach to determine the exchange rate.
Market segmentation is a process in which the market of potential customers is divided into groups or segments based on different characteristics. The segments developed consist of users who respond in the same way as marketing strategies and provide functions such as similar interests, needs or locations.
(a) The types of product produced or sold.
(b) The nature of the service provided.
(c) The costs of the operations envisaged.
(d) Type of clients or market segments being searched.
Marketing specialists predict general product demand based on sales forecasts, channel reviews, and market competition. The prices of similar competing products can help show off our products. We can determine the market potential by trying different prices on different markets. Supply and demand are a key factor in the markets. By using reward tickets, you also have the opportunity to see supply and demand in accordance with the schedule.
Marketing Specialists choose the brand image and market share based on the competitive response. Market planners need to know exactly what their competitors are demanding. The high level of competitive prices allows the company to set prices that are higher, smaller or even larger, and in many cases, such a solution is easier.
A better initial price may be desirable if a lower market share is expected and the marketing tool has to accept a relatively lower price, expecting a much larger share in the brand market. An affordable pricing strategy has been developed to achieve the expected market share, both in terms of fees and the costs of penetration or compromise. i.e., fair trading or fair price- to cover the cost of goods, operating expenses and normal profit margin.
5.The Market Mix:
The range of marketing products consists of a maximum of four components, the so-called 4 P’s marketing.
Over the years, the marketing set has created and revolutionized all our marketing plans and the way we use and change different markets. Marketing specialists must ensure the right price as a marketing element. An advertising strategy influences price decisions.
A marketing kit project can show the role of pricing policy in terms of advertising and distribution policy. The prize is an essential strategic element of the marketing element because it affects the perception of quality and allows to identify the positions of brands or brands. The price is also a good tactical variable. Price changes can be much faster than any other variable in the marketing set. Therefore, the price has a good tactical value.
6.Estimate of Costs:
Direct and cheap prices are not always desirable because they are not dependent on demand. Marketing must take into account all related costs and require price flexibility. The trading price is the full price that the Forex trader must pay for his commercial activities. There are additional costs associated with the products you want to buy, such as an information service, customized technical analysis services, and faster connections, as well as compulsory costs. These are costs that every seller has to bear.
The pricing policy is a guideline for the implementation of the pricing strategy. The pricing policy can be solid or flexible. The pricing policy must change and adapt to changing goals and changing conditions. Confluence is a market point that crosses two or more levels that create a hot spot or so-called sweet spot on the market. In other words, when looking for areas between market, we are actually looking for areas in which two or more levels or analytical tools converge.
This strategy is a plan of action to adapt to changing market conditions. New and unexpected changes such as lowering competitors’ prices, government regulations, economic slowdown, changes in consumer demand, etc. Everyone can change, so special attention should be paid to pricing policies and producers.
9. The Price structure:
The evolution of pricing structures based on pricing policies and strategies is the last step in pricing. The pricing structure now specifies the sales prices of all products as well as the allowed discounts and fees charged by dealers, as well as the different types of buyers.
The comparison of price movements in the Forex market is basically simple but misleading. To avoid possible currency depreciation, you choose a blocked exchange rate service that guarantees that your currency will be changed at the same pace, regardless of factors that affect the negative volatility. The domestic exchange rate is a window of economic stability and is therefore constantly monitored and analyzed. If you intend to send or receive money from abroad, follow the exchange rates.